A simple rapid spectrophotometeric method has been developed for estimation of acarbose from bulk drug and tablet dosage form by using potassium permagnate and sodium hydroxide as oxidizing agent. The method is based on the formation of green colored complex of drug with 0.1 N alkaline potassium permanganate having absorbance maxima at 625 nm. The beer’s law is obeyed in the concentration range of 10-70 µg/ml of the drug but more precisely it obeys in the range of 10-50 µg/ml. The slope and intercept values are 0.0118 and 0.0071, respectively. Results of analysis of this method were validated statistically and by recovery studies. The method is applied to the marketed tablet formulation. Result of analysis of tablet formation given as percentage of label claim+ standard deviation is 99.78 + 0.1053. The precision and accuracy was examined by performing recovery studies and was found to be 99.59 + 0.180.The developed method is simple, sensitive and reproducible and can be used for routine analysis of acarbose from bulk and tablet dosage form.